An Overview of Global Strategic Sourcing

This chapter presents step-by-step analysis of strategic sourcing, which has always been a purchasing and supply management function. In its traditional form, it is the process of locating and employing suppliers. However, various organizations and academics often define this process in different ways when managing their supply chains. As supply chains extend into global markets today, one finds under the heading of strategic sourcing a number of often confusing and disparate methods. Additionally, strategic sourcing is an organizational procurement and supply management process used to locate, develop, qualify, and employ suppliers that add maximum value to the buyer's products or services. Essentially, strategic sourcing and procurement part ways following the formation of a contract or the formal qualification of a selected supplier. When the word “global” is added to the title, it means that suppliers may be selected beyond the organization's national borders.